City Workers Pick Raise Over Cheaper Insurance

In A Poll, Employees Voted For A 3 Percent Salary Increase Rather Than A 10 Percent Cut In Health-care Premiums.

May 26, 1993|By Robin Pollack, Sentinel Correspondent

LEESBURG — City workers soon will get what most of them wanted: a retroactive pay raise for the first six months of this budget year, instead of additional help with health insurance bills.

However, Leesburg's approximately 350 employees will have to wait to see whether that retroactive raise will be extended for the entire budget year, which ends Sept. 30.

The 3 percent cost-of-living increase had been on hold since November because city leaders first wanted to see whether Leesburg's economic condition would improve.

Meanwhile, the city's employee health insurance costs have skyrocketed, causing it to increase monthly premiums for workers and their families.

The employees were polled recently to determine whether they wanted to receive a raise or have the city pay 60 percent of the cost of dependent coverage. The city now pays half that cost for families and the entire cost for its workers.

Based on that survey, city commissioners Monday night narrowly voted to award the raises at a total cost of $154,000.

Commissioners Charles Strickland and David Connelly voted against the move, saying raises for workers on the bottom rung of the salary ladder will be eaten up by taxes. That wouldn't happen if the city instead picked up more insurance costs for workers' families, they said.

''I can't believe the vast majority of the city's employees have another insurance plan'' that covers their families, Strickland said. ''I can't understand why people would vote to cost themselves more money.''

Added Connelly: ''I sympathize with the guys in the trenches . . . on the lower side of the salary scale.''

City electric department employee Tommy Richey agreed that the 3 percent raise isn't enough to make a dent in the bank accounts of lower-paid employees.

''The money's not going to do any good: I don't care if you bank it and get interest on it,'' said Richey, who voted for more help with insurance premiums.

Effective Tuesday, health coverage for employees will increase from $160 to $200 per month. Coverage for family members will increase from $185 to $230.

During the past two years, the city has spent $500,000 more than was budgeted for employee health-care claims, which led to the cost increase.